income tax

noun

: a tax on the net income of an individual or a business

Examples of income tax in a Sentence

Federal income tax will be deducted from your pay.

The new law will lower income taxes for most taxpayers.

Recent Examples on the Web

Instead, the providers typically only face ordinary corporate income tax, which is a flat 21% income tax rate at the federal level combined with the state’s corporate income tax rate. — Nathan Goldman, Forbes.com, 1 July 2026

Amendment 5, which seeks to phase out the state income tax, would not repeal those exemptions. — Kacen Bayless, Kansas City Star, 1 July 2026

The income tax had just been introduced, with the top rate of 7% applied to incomes exceeding $500,000. — Steve H. Hanke, Fortune, 1 July 2026

The agreement ends weeks of lobbying by outside interests and negotiations among lawmakers and the governor at the state Capitol about how to handle a surge of income tax collected on stock market gains related to artificial intelligence. — Taryn Luna, Los Angeles Times, 30 June 2026

Word History

First Known Use

1799, in the meaning defined above

Rhymes for income tax

• anticlimax
• counterattacks
• hemothorax
• mesothorax
• metathorax
• almanacs
• carrybacks
• haversacks
• lumberjacks
• maniacs
• microcracks
• minimax

Kids Definition

income tax

noun

ˈin-(ˌ)kəm-

: a tax on the income of a person or business

Legal Definition

income tax

noun

: a tax on the net income of an individual or a business compare excise, property tax